Equitable Life

Earlier this week I joined other MPs to press the Minister to honour his election pledge to compensate Equitable Life victims. He told us he would make a proper statement before the summer recess.

Today he kept his word, published the Chadwick Report and the draft Bill to allow the payments.

The Report concludes that Equitable Life policy holders lost between £2.9 billion and £3.7 billion. Chadwick recommends that compensation is paid, as the regulatory failure aggravated the losses. He proposes offering 20-25% of the loss in recognition of the regulatory mistakes.

The government has not accepted this recommendation. Instead, the Minister has said he will consult widely on it before reaching a conclusion as part of the autumn spending review.

He has appointed a three man commission to work out the details of a fair and independent scheme to decide and make the payments, once the total is agreed.

Any constituent who wishes to contribute to the Minister’s consultation should send their views to the Financial Secretary at HM Treasury, Whitehall London SW1.

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8 Comments

  1. Stephen Eborall
    Posted July 22, 2010 at 7:49 pm | Permalink

    John

    I am not a great believer in trusting MP's to act honourably ,but I feel you are an exception to the rule and have probably suffered in politics by standing by your principles – good on you .
    I hope you are a friend of David Cameron's and can speak to him honestly and openly to tell him that if he goes back on his perceived pre- election promise he will never be trusted again by 25% ( the older generation pensioners who are traditionally Conservative) of his voters.
    This is a matter of principle – DO WHAT YOU SAY AND SAY WHAT YOU DO – not just at election time but throughout life – please remind him of this 'true blue ethos'
    regards
    Stephen

  2. gordon marks
    Posted July 23, 2010 at 9:53 am | Permalink

    I live in the Cannock Chase area of Staffordshire.
    I lost £48,000 in EL.

    I am today seeing our new MP (Con) Aidan Burley. He can exspect a serious "Beating Up".

    Come on Con/Lib… Stick yo what you promised BEFORE being elected…
    Do NOT be found in "Derlication of your duty"

    I suggest each and every EL member books an appointment IN PERSON, asap.

    Gordon Marks

  3. mike scanes
    Posted July 24, 2010 at 7:51 am | Permalink

    I suspect David Cameron has no real idea of the damage they will do to their party through their current Equitqble Life policy. Just as people were beginning to feel we could trust politicans again, and that my word is my bond was coming back to our government they try to cheat the most vunerable people in society. Hopefull this will lose the coalition massive support in the country.

  4. Richard griffiths
    Posted July 28, 2010 at 7:01 pm | Permalink

    Like all politicians they give you a bowl of broth then hit you over the head with the ladle cameron is a big liar and hoban is alackey

  5. Alan Jutson
    Posted August 3, 2010 at 5:34 pm | Permalink

    Afraid Mr Chadwick was given a rather narrow brief by G Brown on which to report. So his report will only be very narrow and partially factual.

    The simple fact is that the FSA failed to warn the General Public and Policy holders in particular, about what was going on in the 10 years of its inspection of Equitable Life, which failed to spot any wrongdoings. If they had then maybe Policy holders would have been alerted, and been able to transfer out with our money still intact.

    The fact of the matter is The FSA failed to pick up or alert anyone, and so we all suffered a huge financial loss due to a Government regulator failure, indeed Maladministration according to the Ombudsman..

    Can only suggest that the Financial Ombubsman report (which took four years of investigation) be adopted in full with full compensation. The fact that we are in difficult financial times, is no excuse for justice..

    • Alan Jutson
      Posted September 25, 2010 at 12:34 pm | Permalink

      John

      Many thanks for your prompt response and comments in reply to my covering letter, which included a full copy of my comments to the Financial Secretary.

  6. SJB
    Posted September 25, 2010 at 7:01 pm | Permalink

    I wrote to Hoban expressing my disappointment that HMG appears to have decided not to follow the Parliamentary Ombudsman’s recommendation on how compensation should be awarded. I also made the point that the decision is hardly likely to encourage today's youngsters from making provision for their retirement.

  7. R.T.Harrison
    Posted October 21, 2010 at 9:22 am | Permalink

    As an Equitable policy holder in my own right and subsequently,through my employer under a Contributory scheme I am still not convinced as to the honesty and morality of politicians. When I see the cheque I will believe them.The Chancellor tells us that we must all tighten our belts but although we face cuts in public sector jobs, salaries and pensions, I noted that members of parlianent do not seem to be facing any cuts in THEIR salaries and pensions or in other words "DO AS WE SAY NOT AS WE DO"

  • About John Redwood


    John Redwood won a free place at Kent College, Canterbury, and graduated from Magdalen College Oxford. He is a Distinguished fellow of All Souls, Oxford. A businessman by background, he has set up an investment management business, was both executive and non executive chairman of a quoted industrial PLC, and chaired a manufacturing company with factories in Birmingham, Chicago, India and China. He is the MP for Wokingham, first elected in 1987.

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